Thank you, Mr. Speaker. On Monday there is going to be a referendum in Yellowknife on the Con Mine community energy system. I’ve talked with City officials to get a firm understanding of the project proposal and I want to share that information to help voters make a wise decision.
It’s important to be clear what the vote is or isn’t and what citizens are being asked to approve. This vote is not a final investment decision or a vote to go ahead with the project. Referendum approval would allow the City to talk to partners in a meaningful way. It would give the signal of serious intention private firms need before undertaking the expense of a detailed business plan assembly.
With the consent of the referendum, the City can proceed to finding a partner who will provide capital costs confirmation. With firm capital costs,
customer rates can be confirmed, and given confirmation that the project is viable, work can proceed on signing up customers. City officials tell me that then and only then would the City use the consent given under the referendum and assemble the funds needed to establish a new arm’s-length utility.
This is a cautious strategy and very risk adverse. It provides a number of off-ramps to back away before any capital construction decision is made based upon the hard numbers of the business case. After the system is constructed, building owners will hold the risk of fuel price fluctuation.
So why is the City making this project its business? Because the City wants Yellowknife’s future to be based on environmentally responsible energy price stability, with a secure future for stable, low-energy costs. City growth can be planned around a built-in economic advantage based on low carbon emissions. City planners are acting to reap the windfall of federal funds available now. And for taxpayers, energy sales could actually result in decrease of tax assessments thanks to the new revenue source. The City is offering voters a cautious next step towards a more secure, greener future. There will be lots more public scrutiny and lots of opportunity for hard questions.
I’m urging Yellowknifers to get out and vote on Monday, March 14
th
, and let’s keep our options
open, Mr. Speaker.